Why I Took the Series 65 Exam

What’s up, everyone? Today I will explain why I took the Series 65 Exam!

What’s The Series 65?

People in the finance industry have a history of stealing money, probably because it is so tempting.

Because of that, the SEC and other regulators have established laws or licenses to prevent fraud.

One of these licenses is the Series 65.

The number 65 isn’t significant, but it’s basically a license for investment advisors.

Any banker or advisor you know probably has the Series 65.

The Series 7 license is for traders and brokers.

The Series 65 is a 3-hour exam with 140 questions, so it’s difficult.

I purchased an online course and got a 63% on the practice exam without studying.

Knowing that you need around 70% to pass, that’s not a bad score. However, I wasn’t familiar with most of the content.

I decided to try and get the highest score I could. But I didn’t do it for bragging rights…

Why I Took The Exam

I did it so that I could charge management fees on my fund.

I said in my video…

“If you’re not licensed, you can’t charge management fees.”

So, what’s the big deal?

Many funds use a 2/20 (2% management fee and 20% carried interest).

If my fund had a 22% return, investors would make about 17% and management (me) would make 5%.

5% might not seem like a lot, but 5% of a $100,000,000 fund is $5M!

So, passing the Series 65 gives me so much more earning potential!

I started my first 2 funds without a license, and I made money, but I could’ve made more if I was licensed!

No Risk, High Reward

After I pass, I’ll be considered an “Investment Advisor.”

Then, I’ll start my fund and my only “client” will be the fund. My “client/fund” will then pay me 2% on whatever it makes!

Additionally, if the fund does well, then I’ll charge a management fee and a performance fee!

Warning: Don’t charge a management fee on your first fund! Investors will be hesitant to invest in someone who doesn’t have a track record, and a management fee might scare them off.

Well, that’s why I took the Series 65 Exam!

That’s it for today!


Bridger Pennington

Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!

DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.

Leave a Reply